1. Field of the Invention
The present invention relates to systems and methods for accessing, manipulating and using funds associated with placing a pari-mutuel wager. More specifically, the present invention relates to systems and methods of accessing funds using a credit instrument in order to place a pari-mutuel wager and use of such funds for the purchase of goods, services or both at the pari-mutuel wagering establishment.
2. State of the Art
Pari-mutuel wagering is considered one of the fairest systems of betting. The general concept of pari-mutuel wagering is a betting system in which winners share the total stakes wagered on an event, minus a percentage for the management or “house.” Stated another way, pari-mutuel wagering is a form of betting in which the losers' wagers (less a percentage for the house and taxes) are distributed among the winners.
A representative example of pari-mutuel wagering occurs in horse or dog race betting in which those who bet on the winning horses or dogs share the total stakes wagered minus a percentage set aside for the management and an amount needed to fund the purses in the race. There may be other portions of the total stakes set aside such as for taxes or other fees. In the typical horse race pari-mutuel wagering system, the finishing order of the horses (e.g., the win horse, the place horse, and the show horse) creates winning events for the bettor. However, pari-mutuel wagering need not be limited to horse or dog racing. The pari-mutuel wagering environment can be used for virtually any type of event. For example, pari-mutuel wagering may be used for sporting events such as jai alai, baseball, basketball, football, soccer, etc.
Pari-mutuel wagering relies to a significant degree on the skill of the bettor. For instance, in a horse or dog race, the bettor uses the racing history of the horses or dogs plus their knowledge regarding the specific type of race, length of the race, track conditions, or other conditions to determine his or her wagering decision such as which horse will win, place, or show. Similarly, in choosing the outcome of a sporting event such as a basketball tournament, the bettor uses his or her knowledge of each of the teams, how each team will match up against another, and many other factors in determining his or her wager.
In a conventional pari-mutuel wagering environment, wagering funds are stored in either wagering accounts, which have a bettor's name and/or other identifying information associated with the wagering account, or wagering vouchers, which must be presented at the pari-mutuel facility to effect a wagering transaction. An example of the conventional pari-mutuel wagering environment can be found in U.S. Pat. No. 4,322,612 to Lange. Patrons purchase cash vouchers at teller windows or, alternatively, from terminals that accept and validate currency and issue cash vouchers. For example, a bettor typically inserts a cash voucher into a betting machine and places his or her wagers. Upon completion of the wager entry, the betting machine issues wager tickets to the bettor that reflect the wagers made and a new cash voucher that reflects the balance of credit remaining. If the bettor elects to cease wagering before all remaining credits are exhausted, the bettor may have the cash voucher converted to cash at teller terminals or may mail the voucher to the betting establishment for reimbursement. Cash vouchers afford bettors certain conveniences by reducing or eliminating the need to stand in long lines at betting windows. However, other aspects of cash vouchers are inconvenient. For example, bettors are required to keep track of multiple vouchers as wagers are placed throughout the wagering session. Furthermore, vouchers are not particularly durable since they are made from paper. Finally, cash vouchers and the wagers produced therefrom are discrete and independent from each other (i.e., bettors must track and redeem both for full reimbursement). However, the use of cash and cash vouchers may be problematic in that if a player loses their cash or cash voucher, the cash or cash voucher can be used by someone else. Also, the pari-mutuel gaming establishment is not able to track betting patterns of pari-mutuel wagers made with cash or cash vouchers.
Like cash vouchers, wagering accounts enable bettors to establish a credit balance from which they can make wagers. Typically, a patron purchases (or opens) a wagering account at a designated staffed area within the pari-mutuel racing facility. For instance, with the Penn National PLAYERS' CHOICE club card, players are required to provide a photo identification and fill out an application in order to receive the PLAYERS' CHOICE club card. Accounts can be opened in a variety of denominations, but many tracks require a minimum deposit of $25 to $100. In conventional pari-mutuel wagering activities, a patron can only open a wagering account by providing his or her name and, optionally, other identifying information such as a social security number, for association with the account. The patron receives a receipt or a house card that contains a unique account number and a personal identification number (PIN). Subsequently, the patron may place wagers by inputting this information into specially designated wagering terminals or by swiping the house card in a card reader. The cost of each wager is automatically deducted from the account balance. When the wagering is completed, the specially designated wagering terminal may issue a receipt (not a redeemable ticket) as a confirmation of the wagers placed. Wagers are electronically stored in the host computer, and prizes for winning wagers are automatically credited to the individual's wagering account. To retrieve funds from the wagering account, a patron can go to a teller at a betting establishment or an off-site betting site and transfer money to his or her bank account, or request a check through the mail. By automatically crediting patrons' winnings, account wagering is more dynamic than the cash voucher system. Like the cash voucher system, account wagering can reduce or eliminate the need to stand in long lines at betting windows by further lowering the cost of wagering equipment. Furthermore, account wagering reduces the number of tickets and vouchers that a patron must track. However, account wagering also presents inconveniences in that establishing a wagering account can be time consuming and confusing and as with cash vouchers, account wagering is used solely for the purchase of pari-mutuel wagers on-site and off-site of the betting establishment thereby limiting their use for purposes other than wagering. Additionally, account wagering does not allow for anonymity of wagering, a trait that is preferred by many patrons who seek confidentiality in their wagering transactions.
Penn National offers a ticketless wagering account called a “day account” wherein a patron may get a voucher associated with a portable terminal such as a TINY TIM terminal. The patron is able to establish the day account by going to a teller and setting up the day account, wherein pari-mutuel wagers are placed with the TINY TIM terminal.
The New York Racing Association (NYRA) also offers a ticketless wagering account called a NYRA One Account. A bar coded account card is provided that enables placing pari-mutuel wagers using a so-called “SAM machine” located at a race track. A patron places a bet by inserting his or her account card in a designated slot in a SAM machine located at the race track. The patron keys in his or her PIN. A screen is displayed showing the account balance. The patron touches the caption display “Acct. Wager” and reinserts the account wagering card. The patron then places his or her wager using the interface on the SAM machine. The display screen reflects the deductions as the patron makes each bet. The patron's account associated with the account card will be credited or debited immediately after the race on which the patron wagered is made official. However, the funds associated with the NYRA One Account Card may only be used for wagering purposes and as with conventional wagering accounts, do not allow for anonymity in wagering.
Numerous cashless gaming systems exist in the prior art. For instance, U.S. Pat. No. 5,984,779 to Bridgeman et al., the disclosure of which patent is incorporated by reference herein, discloses a gaming method for table games (e.g., blackjack, pai-gow, etc.) and real time electronic gaming (slots, draw poker, keno, bingo) where payment may be accepted using a cashless system such as coupons, credit cards, or debit cards. U.S. Pat. No. 5,265,874 to Dickinson et al. discloses a cashless gaming apparatus and method, the disclosure of which is incorporated by reference herein.
Another cashless gaming system is disclosed in U.S. Pat. Nos. 6,347,738 and 5,902,983 to Crevelt et al., the disclosures of each of which are incorporated by reference herein. The patents by Crevelt et al. disclose a gaming machine that includes an apparatus necessary to send requests to, and receive authorizations from, an electronic funds transfer (EFT) system or a financial network. All such requests for credit are limited to a preset amount, so that when a player uses an EFT transfer to obtain playing credit, that credit will be limited to no more than a specified amount. In practice, the player inserts his or her credit card, ATM card (debit card), or pari-mutuel gaming venue issued debit card, plus some other means for verifying a player's identity if desired, requests playing credit, and receives the preset amount of credit which can be converted to plays on the gaming machine. If the player wins, the gaming machine may be used to transfer a payout to the player's account. While cashless gaming machines increase the ease and convenience to the player, Crevelt et al. only discloses gaming environments such as a traditional slot game, a progressive slot game, video poker games, a keno game, a blackjack game, a multiline game, or a lottery game. Further, the pari-mutuel gaming venue issued debit cards are only used for wagering purposes and are not anonymous.
However, the use of credit cards, debit cards or pari-mutuel gaming venue issued debit cards is cumbersome because the player's account balance is stored on the financial network. Further, each time the player desires to use the credit card, debit card or pari-mutuel gaming venue issued debit card, the totalisator system must communicate with the financial network to validate that funds are available and remove the finds from the account balance associated with the credit card, debit card or pari-mutuel gaming venue issued debit card. Another disadvantage of the betting cards conventionally used in pari-mutuel wagering is that the pari-mutuel wagering transactions are linked to the player's name and, thus, the player's wagering activities may be tracked. Many players do not open such wagering accounts because they do not want their wagering activities to be known by third parties due to privacy concerns.
Since the account balance is stored on the financial network, a highly reliable and fast connection is required for the totalisator system to access the financial network or customer service suffers. For instance, as players typically desire to place pari-mutuel wagers at the last possible moment when odds are approaching final odds, any pari-mutuel wager transactions that are placed against the player's account balance on the financial network needs the fast connection between the financial network and a point-of-sale wagering device of the totalisator system for such pari-mutuel wagers to be placed. Any interruption or delay in communication between the financial network and the point-of-sale wagering device caused by the quality of the connection or other network traffic will cause dissatisfaction of the player and any other players waiting to place pari-mutuel wagers. Further, ensuring a high quality and reliable connection can be costly.
In addition to the problems associated with network connections, loading, un-loading and transaction charges can be prohibitive to the player. For instance, banks and other financial institutions typically charge a per transaction fee and/or a fee based on the value of the transaction each time the player accesses their account balance stored on the financial network. Thus, any fees that are charged to the player to access their balance on the financial network can be substantial and may discourage or even prevent players from making a significant number of pari-mutuel wagers.
Therefore, there exists a need in the art for a method of pari-mutuel wagering where the bettor has simultaneous access to funds via an EFT system or funds in an account associated with an instrument for pari-mutuel wagering, wherein the instrument may be used for the purchase of products and/or services on-site at the physical betting locations. Fulfilling this need creates a cashless, country club-like environment at the race track, making it easy to keep track of all expenditures (e.g., wins, losses, and purchases) for the day and facilitating greater spending by the patron on-site and, thus, increased revenue and profit for the pari-mutuel facility. A need also exists for a method of anonymous wagering, wherein a player is able to place pari-mutuel wagers anonymously, yet, still have the benefits of a cashless wagering system.